Economy

Centre limits allocation under MEIS scheme for exporters to ₹15,555 crore for April 1-Dec 31

Our Bureau New Delhi | Updated on November 12, 2020

location for FY 2019-20 at ₹ 39,097 crore

The Centre has approved the allocation of ₹15,555 crore for Merchandise Export from India Scheme (MEIS) benefits for exports made during April 1-December 31 period of financial year 2020-21 and ₹39,097 crore for MEIS benefits during FY 2019-20.

“It may be ensured that the afore-stated allocations are utilised for issuance of duty credit scrips only for exports made during the respective periods i.e ₹39,097 crore for FY2019-20, ₹10,555 crore for the period April 1, 2020 to August 31, 2020 and ₹ 5,000 crore for September 1, 2020 to December 31, 2020,” the office memorandum sent by the Director (Drawback) to the Directorate General of Foreign Trade pointed out.

To ensure that MEIS allocations for FY 2019-20 and for FY 2020-21 (April to December, 2020) are not exceeded, DGFT should review the MEIS outgo periodically and share scrip issuance data on a regular basis with the Department of Revenue, the memorandum stated.

“Further, keeping in mind the ongoing stress on Customs revenues, it is suggested to limit the issuance of MEIS duty credit scrips in this financial year. Accordingly, the DGFT is requested to issue MEIS scrips up to a total value of ₹16,000 crore in FY 2020-21. Issuance of remaining scrips may be spread over the subsequent financial years through an appropriate mechanism,” it added.

The Centre has decided to discontinue the MEIS scheme from January 1, 2021, as it is not compliant with World Trade Organization norms. Exporters will then be reimbursed the duty paid on inputs through the new Remission of Duties or Taxes on Export Products Scheme, the rates for which are under formulation.

Published on November 12, 2020

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